Standard cost systems and the calculation of variances facilitate the management practice known as
A) management development.
B) management by exception.
C) just-in-time management.
D) managing by the numbers.

Question

Quizplus · Accepted Answer

Standard cost systems involve creating a predetermined cost for each element of the production process, allowing for the calculation of the variance between the actual cost and the standard cost. This facilitates management by exception, where managers can focus on significant variances and take corrective actions to address any issues. Just-in-time management and managing by the numbers are separate management practices not directly related to standard cost systems.

Standard Cost Systems and the Calculation of Variances Facilitate the Management